Bidding for sports betting licenses in Massachusetts is poised to begin again, more than three years after legal wagering went live in the Bay State.
- The Massachusetts Gaming Commission unanimously voted to reopen the application process for online sports betting licenses more than three years after legalization.
- The decision was prompted by bet365’s request to apply for a statewide mobile betting license, signaling renewed interest despite legal uncertainty around prediction markets.
- Officials will assess demand and may create a competitive evaluation process if more applicants emerge than available licenses.
The Massachusetts Gaming Commission (MGC) voted 5-0 on Thursday in favor of reopening the process that allows companies to apply for sports wagering licenses in the commonwealth.
Commissioners voted to reopen that process after a request from bet365 to do so, as the U.K.-based company wants to apply for a so-called “Category 3” sports wagering license in the state. In other words, a permit to offer statewide online sports betting in Massachusetts.
The request comes as Massachusetts and other states are fighting court battles with prediction markets over the legality of sports event contracts, the trading of which resembles state-regulated sports wagering.
Prediction market operators have claimed they are exclusively regulated at the federal level, and that states can’t curb their activities.
Good for the heart
The fact that a company wants to subject itself to state-level regulation and taxation in a time of prediction market-related disruption appealed to MGC chair Jordan Maynard.
“That does hearten me, that people still want to enter the legal market in Massachusetts,” Maynard said during Thursday’s meeting. “So I have to say I respect that.”
There are four “untethered” mobile sports wagering licenses still available in Massachusetts, meaning they do not require an online sportsbook operator to partner with a brick-and-mortar casino. There are also seven online sports betting operators currently licensed in Massachusetts overall, including BetMGM, DraftKings, and FanDuel.
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Second time's the charm?
This is technically bet365’s second run at a license in Massachusetts. The company kicked the tires before the state’s online sports betting market opened in 2023, but ultimately backed off plans to enter Massachusetts via a partnership with Raynham Park, a simulcast-wagering facility located south of Boston.
Since then, though, bet365 has launched in several other states and is now live in 16, including the fledgling Missouri market.
It’s possible others are interested in a Massachusetts sports betting license now as well.
Plot twist: A Raynham Park spokesperson tells me that bet365 is no longer their mobile sports betting partner and that they have not settled on another yet. https://t.co/hbuidmHe8Q
— Geoff Zochodne (@GeoffZochodne) January 24, 2023
Commission staff recommended (and commissioners approved) evaluating a timeline for additional applications at a public meeting in the future, which would be followed by the publication of a “Notice of Intent” to see how many potential applicants are out there.
“If the Commission receives more applications for the Category 3 mobile only licenses than are available, the Commission will need to create a competitive evaluation process,” a memo to commissioners noted. “This process does not currently exist in regulation or statute and was not required in the evaluation of the original slate of applicants as there were fewer applicants than licenses. The posting of the notice of intent would be an effort to plan for such a contingency as the drafting of these regulations could take significant time and effort.”
